Brooks Automation, Inc. - FORM 8-K - EX-99.1 - UNAUDITED PRO FORMA FINANCIAL STATEMENTS - May 30, 2014

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Exhibit 99.1

                          

BROOKS AUTOMATION, INC.
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Basis of Presentation

On May 30, 2014, Brooks Automation, Inc. (“Brooks” or the “Company”) completed the sale of certain assets and assumed liabilities exclusively related to its Granville-Phillips instrumentation business (the “Business”) for a total sales price of $87,000,000 to MKS Instruments, Inc. (the “Sale”). The unaudited pro forma consolidated financial statements consist of unaudited pro forma consolidated balance sheet of Brooks as of March 31, 2014 and unaudited pro forma consolidated statements of operations of Brooks for the years ended September 30, 2013, 2012 and 2011. The unaudited consolidated statement of operations for the six months ended March 31, 2014 reflecting the Business as discontinued operations was reflected in the Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2014. The following unaudited pro forma consolidated financial statements were derived from Brooks’ historical consolidated financial statements and give effect to the Sale. The following unaudited pro forma consolidated financial statements should be read together with our historical consolidated financial statements and accompanying notes.

The unaudited pro forma consolidated financial statements are not intended to be a complete presentation of Brooks’ financial position or operations had the Sale and related agreements occurred as of and for the periods indicated. In addition, the unaudited pro forma consolidated financial statements are provided for illustrative and informational purposes only and are not necessarily indicative of Brooks' future results of operations or financial condition had the Sale been completed on the dates assumed. The pro forma adjustments are based on available information and assumptions that Brooks' management believes are reasonable, that reflect the impacts of events directly attributable to the Sale and related transaction agreements, that are factually supportable, and for purposes of the statements of operations, are expected to have a continuing impact on Brooks.

The unaudited pro forma consolidated balance sheet as of March 31, 2014 reflects Brooks’ financial position as if the Sale had occurred as of such date. The unaudited pro forma consolidated statements of operations of Brooks for the years ended September 30, 2013, 2012 and 2011 reflect Brooks' results as if the Sale had occurred as of January 1, 2011.

The unaudited pro forma consolidated financial information should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended September 30, 2013 filed with the Securities and Exchange Commission ("SEC") on November 22, 2013 and the unaudited consolidated financial statements and notes thereto included in the Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2014 filed with the SEC on May 8, 2014.








1

Brooks Automation, Inc.
Unaudited Pro Forma Consolidated Balance Sheet
March 31, 2014

 
 
 
 
 
 As Reported (a)
 
Adjustments Resulting from Disposal of Granville Phillips
 
 
Pro Forma
 
 
 
 
 
(in thousands)
 Assets
 
 
 
 
 
 
 
 
 
 Current assets
 
 
 
 
 
 
 
 
 
 Cash and cash equivalents
 
$
85,281

 
$
84,450

 (c)
 
$
169,731

 
 
 Restricted cash
 
—

 
—

 
 
—

 
 
 Marketable securities
 
50,274

 
—

 
 
50,274

 
 
 Accounts receivable, net
 
83,440

 
—

 
 
83,440

 
 
 Inventories
 
97,352

 
(3,602
)
 (b)
 
93,750

 
 
 Deferred tax assets
 
16,082

 
—

 
 
16,082

 
 
 Prepaid expenses and other current assets
 
12,489

 
—

 
 
12,489

 
 
 
 Total current assets
 
344,918

 
80,848

 
 
425,766

 
 Property, plant and equipment
 
53,074

 
(315
)
 (b)
 
52,759

 
 Long-term marketable securities
 
56,668

 
—

 
 
56,668

 
 Long-term deferred tax assets
 
97,422

 
(29,834
)
 (d)
 
67,588

 
 Goodwill
 
121,969

 
(24,106
)
 (b)
 
97,863

 
 Intangible assets, net
 
55,124

 
—

 
 
55,124

 
 Equity method investments
 
30,342

 
—

 
 
30,342

 
 Other assets
 
7,704

 
—

 
 
7,704

 
 
 
 Total assets
 
$
767,221

 
$
26,593

 
 
$
793,814

 Liabilities and equity
 
 
 
 
 
 
 
 
 Current liabilities
 
 
 
 
 
 
 
 
 
 Accounts payable
 
$
35,672

 
$
—

 
 
$
35,672

 
 
 Capital lease obligations
 
881

 
—

 
 
881

 
 
 Deferred revenue
 
33,137

 
(21
)
 (b)
 
33,116

 
 
 Accrued warranty and retrofit costs
 
6,405

 
(86
)
 (b)
 
6,319

 
 
 Accrued compensation and benefits
 
16,992

 
—

 
 
16,992

 
 
 Accrued restructuring costs
 
1,552

 
—

 
 
1,552

 
 
 Accrued income taxes payable
 
1,246

 
—

 
 
1,246

 
 
 Accrued expenses and other current liabilities
 
16,979

 
—

 
 
16,979

 
 
 
 Total current liabilities
 
112,864

 
(107
)
 
 
112,757

 
 Long-term capital lease obligations
 
7,656

 
—

 
 
7,656

 
 Long-term tax liabilities
 
7,673

 
—

 
 
7,673

 
 Long-term pension liability
 
837

 
—

 
 
837

 
 Other long-term liabilities
 
3,790

 
—

 
 
3,790

 
 
 
 Total liabilities
 
132,820

 
(107
)
 
 
132,713

 Equity
 
 
 
 
 
 
 
 
 
 Preferred stock, $0.01 par value
 
—

 
—

 
 
—

 
 Common stock, $0.01 par value
 
803

 
—

 
 
803

 
 Additional paid-in capital
 
1,831,802

 
—

 
 
1,831,802

 
 Accumulated other comprehensive income
 
21,873

 
—

 
 
21,873

 
 Treasury stock, at cost
 
(200,956
)
 
—

 
 
(200,956
)
 
 Accumulated deficit
 
(1,019,945
)
 
26,700

 (e)
 
(993,245
)
 
 
 
 Total Brooks Automation, Inc. stockholders' equity
 
633,577

 
26,700

 
 
660,277

 
 Noncontrolling interest in subsidiaries
 
824

 
—

 
 
824

 
 
 
 Total equity
 
634,401

 
26,700

 
 
661,101

 
 
 
 Total liabilities and equity
 
$
767,221

 
$
26,593

 
 
$
793,814


See accompanying notes to these Unaudited Pro Forma Condensed Consolidated Financial Statements
2

Brooks Automation, Inc.
Unaudited Pro Forma Consolidated Statement of Operations
For the Year Ended September 30, 2013


 
 
 
 
 As Reported (f)
 
Adjustments Resulting from Disposal of Granville Phillips (g)
 
 
Pro Forma
 
 
 
 
(in thousands, except share data and per share data)
Revenues
 
 
 
 
 
 
 
 
 Products
 
$
362,404

 
$
(27,393
)
(h)
 
$
335,011

 
 Services
 
88,548

 
(1,119
)
 
 
87,429

 
 
 Total revenues
 
450,952

 
(28,512
)
 
 
422,440

Cost of revenues
 
 
 
 
 
 
 
 
 Products
 
243,709

 
(14,298
)
 
 
229,411

 
 Services
 
61,261

 
(539
)
 
 
60,722

 
 
 Total cost of revenues
 
304,970

 
(14,837
)
 
 
290,133

Gross profit
 
145,982

 
(13,675
)
 
 
132,307

Operating expenses
 
 
 
 
 
 
 
 
 Research and development
 
48,991

 
(2,782
)
 
 
46,209

 
 Selling, general and administrative
 
99,545

 
(3,029
)
 
 
96,516

 
 Restructuring charges
 
6,465

 
(85
)
 
 
6,380

 
 
 Total operating expenses
 
155,001

 
(5,896
)
 
 
149,105

Operating loss
 
(9,019
)
 
(7,779
)
 
 
(16,798
)
Interest income
 
1,032

 
—

 
 
1,032

Interest expense
 
(2
)
 
—

 
 
(2
)
Other income, net
 
1,227

 
—

 
 
1,227

Loss before income taxes and equity in earnings of
 
 
 
 
 
 
 
 
 joint ventures
 
(6,762
)
 
(7,779
)
 
 
(14,541
)
 Income tax benefit
 
(2,170
)
 
(2,815
)
 
 
(4,985
)
Loss before equity in earnings of joint ventures from continuing operations
 
(4,592
)
 
(4,964
)
 
 
(9,556
)
Equity in earnings of joint ventures
 
2,442

 
—

 
 
2,442

Net loss from continuing operations
 
(2,150
)
 
(4,964
)
 
 
(7,114
)
 
 Net income attributable to noncontrolling interests
 
(65
)
 
—

 
 
(65
)
Net loss attributable to Brooks Automation, Inc. from continuing operations
 
$
(2,215
)
 
$
(4,964
)
 
 
$
(7,179
)
Net loss per share attributable to Brooks Automation, Inc. from continuing operations
 
 
 
 
 
 
 
 
 Basic net loss per share attributable to Brooks Automation, Inc. from continuing operations
 
$
(0.03
)
 
 
 
 
$
(0.11
)
 
 Diluted net loss per share attributable to Brooks Automation, Inc. from continuing operations
 
$
(0.03
)
 
 
 
 
$
(0.11
)
Shares used in computing earnings per share
 
 
 
 
 
 
 
 
 Basic
 
65,912

 
 
 
 
65,912

 
 Diluted
 
65,912

 
 
 
 
65,912


See accompanying notes to these Unaudited Pro Forma Condensed Consolidated Financial Statements
3

Brooks Automation, Inc.
Unaudited Pro Forma Consolidated Statement of Operations
For the Year Ended September 30, 2012


 
 
 
 
 As Reported (f)
 
Adjustments Resulting from Disposal of Granville Phillips (g)
 
 
Pro Forma
 
 
 
 
(in thousands, except share data and per share data)
Revenues
 
 
 
 
 
 
 
 
 Products
 
$
431,961

 
$
(29,456
)
(h)
 
$
402,505

 
 Services
 
87,490

 
(1,012
)
 
 
86,478

 
 
 Total revenues
 
519,451

 
(30,468
)
 
 
488,983

Cost of revenues
 
 
 
 
 
 
 
 
 Products
 
283,377

 
(15,929
)
 
 
267,448

 
 Services
 
62,588

 
(506
)
 
 
62,082

 
 
 Total cost of revenues
 
345,965

 
(16,435
)
 
 
329,530

Gross profit
 
173,486

 
(14,033
)
 
 
159,453

Operating expenses
 
 
 
 
 
 
 
 
 Research and development
 
47,464

 
(2,747
)
 
 
44,717

 
 Selling, general and administrative
 
101,223

 
(3,245
)
 
 
97,978

 
 Restructuring charges
 
3,275

 
(122
)
 
 
3,153

 
 Pension settlement
 
8,937

 
—

 
 
8,937

 
 In-process research and development
 
3,026

 
—

 
 
3,026

 
 
 Total operating expenses
 
163,925

 
(6,114
)
 
 
157,811

Operating income
 
9,561

 
(7,919
)
 
 
1,642

Interest income
 
1,213

 
—

 
 
1,213

Interest expense
 
(14
)
 
—

 
 
(14
)
Other income, net
 
660

 
—

 
 
660

Income before income taxes and equity in earnings of
 
 
 
 
 
 
 
 
 joint ventures
 
11,420

 
(7,919
)
 
 
3,501

 Income tax benefit
 
(123,282
)
 
(2,919
)
 
 
(126,201
)
Income before equity in earnings of joint ventures from continuing operations
 
134,702

 
(5,000
)
 
 
129,702

Equity in earnings of joint ventures
 
2,133

 
—

 
 
2,133

Net income from continuing operations
 
136,835

 
(5,000
)
 
 
131,835

 
 Net income attributable to noncontrolling interests
 
(46
)
 
—

 
 
(46
)
Net income attributable to Brooks Automation, Inc. from continuing operations
 
$
136,789

 
$
(5,000
)
 
 
$
131,789

Net income per share attributable to Brooks Automation, Inc. from continuing operations
 
 
 
 
 
 
 
 
 Basic net income per share attributable to Brooks Automation, Inc. from continuing operations
 
$
2.10

 
 
 
 
$
2.02

 
 Diluted net income per share attributable to Brooks Automation, Inc. from continuing operations
 
$
2.08

 
 
 
 
$
2.01

Shares used in computing earnings per share
 
 
 
 
 
 
 
 
 Basic
 
65,128

 
 
 
 
65,128

 
 Diluted
 
65,722

 
 
 
 
65,722


See accompanying notes to these Unaudited Pro Forma Condensed Consolidated Financial Statements
4

Brooks Automation, Inc.
Unaudited Pro Forma Consolidated Statement of Operations
For the Year Ended September 30, 2011


 
 
 
 
 As Reported (f)
 
Adjustments Resulting from Disposal of Granville Phillips (g)
 
 
Pro Forma
 
 
 
 
(in thousands, except share data and per share data)
Revenues
 
 
 
 
 
 
 
 
 Products
 
$
611,117

 
$
(33,933
)
(h)
 
$
577,184

 
 Services
 
76,988

 
(873
)
 
 
76,115

 
 
 Total revenues
 
688,105

 
(34,806
)
 
 
653,299

Cost of revenues
 
 
 
 
 
 
 
 
 Products
 
411,610

 
(18,332
)
 
 
393,278

 
 Services
 
53,474

 
(465
)
 
 
53,009

 
 
 Total cost of revenues
 
465,084

 
(18,797
)
 
 
446,287

Gross profit
 
223,021

 
(16,009
)
 
 
207,012

Operating expenses
 
 
 
 
 
 
 
 
 Research and development
 
39,846

 
(3,447
)
 
 
36,399

 
 Selling, general and administrative
 
102,542

 
(3,266
)
 
 
99,276

 
 Restructuring charges
 
1,036

 
—

 
 
1,036

 
 
 Total operating expenses
 
143,424

 
(6,713
)
 
 
136,711

Operating income
 
79,597

 
(9,296
)
 
 
70,301

Interest income
 
1,153

 
—

 
 
1,153

Interest expense
 
(65
)
 
—

 
 
(65
)
Gain on sale of contract manufacturing business
 
45,009

 
—

 
 
45,009

Other income, net
 
1,882

 
—

 
 
1,882

Income before income taxes and equity in earnings of
 
 
 
 
 
 
 
 
 joint ventures
 
127,576

 
(9,296
)
 
 
118,280

 Income tax provision (benefit)
 
1,954

 
—

 
 
1,954

Income before equity in earnings of joint ventures from continuing operations
 
125,622

 
(9,296
)
 
 
116,326

Equity in earnings of joint ventures
 
4,815

 
—

 
 
4,815

Net income from continuing operations
 
130,437

 
(9,296
)
 
 
121,141

 
 Net income attributable to noncontrolling interests
 
(52
)
 
—

 
 
(52
)
Net income attributable to Brooks Automation, Inc. from continuing operations
 
$
130,385

 
$
(9,296
)
 
 
$
121,089

Net income per share attributable to Brooks Automation, Inc. from continuing operations
 
 
 
 
 
 
 
 
 Basic net income per share attributable to Brooks Automation, Inc. from continuing operations
 
$
2.02

 
 
 
 
$
1.88

 
 Diluted net income per share attributable to Brooks Automation, Inc. from continuing operations
 
$
2.01

 
 
 
 
$
1.86

Shares used in computing earnings per share
 
 
 
 
 
 
 
 
 Basic
 
64,549

 
 
 
 
64,549

 
 Diluted
 
65,003

 
 
 
 
65,003




See accompanying notes to these Unaudited Pro Forma Condensed Consolidated Financial Statements
5

Notes to the Unaudited Pro Forma Consolidated Financial Statements

(a)
Reflects the Company’s consolidated balance sheet as of March 31, 2014, before adjustments to reflect assets and assumed liabilities of the Granville-Phillips instrumentation business as held for sale, as contained in the historical financial statements and notes thereto presented in the Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2014.

(b)
Reflects the elimination of assets and assumed liabilities of the Granville-Phillips instrumentation business as if the Sale had occurred on March 31, 2014.

(c)
Reflects the receipt of cash proceeds from Sale of approximately $84,450,000, net of acquisition costs and transition service costs to be provided to MKS Instruments, Inc.

(d)
Reflects the use of net operating loss carryforwards in connection with the Sale.

(e)
Reflects (b), (c) and (d) as well as the after-tax gain on Sale of approximately $26,700,000.

(f)
Reflects the Company’s consolidated statement of operations for the years ended September 30, 2013, 2012 and 2011, as contained in the historical financial statements and notes thereto presented in the Company’s Annual Report on Form 10-K for the year ended September 30, 2013.

(g)
Reflects the operations of the Granville-Phillips instrumentation business. Amounts exclude corporate costs historically allocated to the Granville-Phillips instrumentation business that will either remain in Brooks’ Product Solutions segment or be reallocated to other segments.

(h)
Revenue for Granville-Phillips for the fiscal years ended September 30, 2013, 2012 and 2011 exclude intercompany sales of $261,000, $405,000 and $419,000, respectively.



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